GMS 724 Lecture Notes - Lecture 7: North American Free Trade Agreement, Most Favoured Nation, Caribbean Community

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Howard Lin

Document Summary

Level of economic integration: bilateral integration two countries cooperate closely, usually in the form of tariff reductions, regional integration a group of countries located in the same geographic proximity decide to cooperate (i. e. European union: global integration countries worldwide cooperate through the wto. The world trade organization: gatt: predecessor to the wto, most favored nation, dispute settlement, the rise of bilateral agreements. Regional economic integration: regional trade agreements integration confined to a region and involving more than two countries, geographic proximity is an important reason for economic integration. Major types of economic integration: free trade area no internal tariffs, customs union no internal tariffs plus common external tariffs, common market customs union plus factor mobility. Effects of integration: static effects, dynamic effects, trade creation, trade diversion, economies of scale. Major regional trading groups: european union, north american free trade agreement (nafta, the americas: caricom, mercosur, can, laia, asean, apec, the african union.